Thursday, March 25, 2010

Sometimes its the statistics mentioned almost as an aside that give you the most insight into how far things have changed. The one below is mentioned in a piece on how a global trade war was averted indicates to me just how far heavy industry has moved towards China.

China produced about 30 million tonnes of steel in the 1980s but in mid-recession last year it produced 568 million tonnes, 14 per cent more than the previous year. Steel analysts say China’s total capacity is close to 700 million, compared with European steel-making capacity of about 200 million tonnes.

6 comments:

This is where the world is headed:"How China has created a new slave empire in Africa http://www.dailymail.co.uk/news/worldnews/article-1063198/PETER-HITCHENS-How-China-created-new-slave-empire-Africa.html

KG - Peter hitchens is a little inflammatory but there is no doubt China is stalking African and other semi developed countries primary productive assets. Chinese money for New Zealand farms just indicates how far we have gone down.

Simon - I dont share that assessment. The two economies are completely interdependent. China will balk as far as it can and will certainly make mincemeat of the current weak occupant of the White House but it would suffer more in a trade war.

SHG - Yes I had a similar thought. New Zealand has an opportunity to get part way there with the current close look at mining. But there is a big head start.